Taking A Lesson From March Madness
Taking A Lesson From March Madness
Why do consumers believe that insurance is a commodity? Because an enormous amount of advertising money has been spent to teach them that. Conversely not enough time, money and effort has been spent to tell them the truth.
Most independent agents and brokers know that not all coverage is alike and there are many opportunities for consumers to be duped into buying less protection than they currently have or that they need to be properly protected. Currently only Mayhem, the character from the Allstate ads, even hints to the consumer’s potential for inadequate coverage when he says if you bought cut rate insurance you might not be covered for this.
We created the Trusted Choice® brand to highlight the benefits of doing business with an independent agent or broker. The ability to offer a consumer customized coverage providing the protection they want, from a choice of insurance companies backed up by professional advice and service especially at the time of a claim. Customized coverage chosen after being given professional advice on coverage eliminates the consumer’s worries of not getting the protection they need and want. It acknowledges that all insurance is NOT ALIKE and what may seem like a small difference in a policy could mean not enough or no protection when a claim occurs.
Independent agents and brokers understand that and Trusted Choice® has worked hard to communicate it to consumers but our resources are limited. More education via advertising needs to come from local agents and brokers. Because our members are all independent business people, they choose the amount and type of advertising they wish to provide for their business. Doesn’t it make sense to allocate a good share of what is being spent on debunking the insurance is a commodity myth? The alternative is to allow the myth to exist, not gain market share and be forced to play the price game in getting consumers to become customers.
It really upsets me to see the direct response carriers trivialize the education, experience and expertise of independent agents and brokers as well as their staffs. Many of these dedicated people have spent years training and hold professional designations like CPCU, CIC, AAI, ACSR to name a few. Trying to provide a consumer quality protection who has been misled to believe insurance is about price instead of value is very frustrating.
I know it seems like an uphill battle but I’ve never known independent agents and brokers to back down when challenged. The recent NCAA men’s basketball tournament showed that determination and will can overcome what seem to be insurmountable odds. How many upsets were there? How many teams who were ranked low and outmanned did the impossible and won their game? Very few people thought UConn had the ability to beat Kentucky in the championship game but they were determined to out hustle and out play their opponent.
Independent agents and brokers have to show that same determination. Although our opponents, the direct response carriers, can out spend us and have convinced consumers they are the better buy based on price we can still win back those consumers and their business. Recently several articles have indicated that many consumers research insurance on the internet but want the services of an agent or broker when they buy. That’s all the opening we need. Our game plan going forward should be to dispel the insurance is a commodity myth and bring back value to the insurance buying process. We need to work aggressively to educate consumers on the pitfalls of buying coverage only based on price. We need to inform them of all the subtle ways coverage can be written to deny them protection when they’ve had a loss. We need to make them believers in the skills that independent agents and brokers bring to buying insurance protection.
It wasn’t easy for UConn and it won’t be easy for us. It will mean changing the way we sell and working harder to convince consumers why they should buy value. It may mean investing some more money to advertise the benefits of doing business with independent agents and brokers. Agents and their staffs will need to work on practicing the best methods of selling value to consumers. It will definitely take commitment and practice to stay true to value selling even when it seems like the odds are stacked against us.
